Moody's Downgrades Tribune to 'Junk' Status Over Debt Plan

By: E&P Staff As expected, Moody?s Investors Service cut the Tribune Co.'s rating today to "junk" status because the company plans to take on more debt to finance a stock repurchase program.

Moody's downgraded Tribune to Ba1 -- the highest junk rating -- from Baa3 and assigned a stable outlook. It affects $5 billion in debt.

Reuters reported that this year Tribune is considered one of Moody's biggest "fallen angels or borrowers slipping below investment grade."

Moody?s lowered its rating on Tribune because the share repurchase program would raise the debt of company to more than four times EBITDA.